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The Financial Stability Oversight Council said Friday it discussed the ongoing annual reevaluation of its designation of a nonbank financial company -- in all likelihood, a reference to American International Group , as media reports suggested the group of regulators would ahead of the meeting. The FSOC didn't say what, if anything, was decided. If the FSOC ruled that AIG was no longer a systemically important financial institution, the insurer would no longer be subject to federal oversight via the Federal Reserve. AIG was bailed out by the federal government during the financial crisis of 2008.

Sep. 22, 2017 at 4:32 p.m. ET

by Steve Goldstein

FSOC said it discussed the annual designation of a nonbank financial company

FSOC said it discussed the annual designation of a nonbank financial company

The Federal Stability Oversight Council may decide to remove federal oversight of American International Group as early as Friday, The Wall Street Journal reported, citing people familiar the the matter. The outcome of whether AIG will continue to be considered a systemically important financial institution -- which subjects the insurer to Federal Reserve oversight -- isn't certain, the report said. Shares of AIG, which was bailed out by the federal government during the financial crisis, edged higher in after-hours trade.

Insurance stocks were mostly lower Monday, as investors awaited the initial estimates of losses from hurricane Harvey, which devastated Texas over the weekend. "While it is early days and Harvey is expected to bring even more rain and flooding for another week, our best guess at this point is Harvey could result in $10-$20bn of industry insured losses making it one of the top 10 most costly hurricanes to hit the U.S.," J.P. Morgan analyst Sarah DeWitt wrote in a Monday note. CreditSights analysts said the most vulnerable lines of business include allied lines, commercial and private auto, commercial multiple peril, homeowners and farmowners multiple peril, crop mulitple peril, private crop, fire, flood and inland marine. Among the companies that are most exposed to the region, Allstate Corp. shares fell 1.7%, Progressive Corp. shares were down 2.5%, Chubb Ltd. fell 1.6%, CNA Financial Corp. was down 0.5% and Hartford Financial Services Group Inc. was down 2%. RenaissanceRe Holdings Ltd. fell 1.8% and Everest Re Group Ltd. fell 2.5%. Dow Jones Industrial Average component Travelers Cos. Inc. fell 3%, to shave about 20 points off the price-weighted index. The S&P 500 was flat.

Avon Products Inc. said Thursday that Chief Executive Sheri McCoy will resign in March, as the company grapples with weak results and pressure from activist investors to accelerate its turnaround plan.

Shares of American International Group Inc. rallied 2.4% in after-hours trade Wednesday, after the insurance company reported a second-quarter profit that beat expectations. Net income rose fell to $1.13 billion, or $1.19 a share, from $1.91 billion, or $1.68 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share rose to $1.53 from $1.15, above the FactSet consensus of $1.20. Consolidated adjusted return on equity improved to 10.5% from 7.9%. Book value per share fell to $81.62 from $83.08, but was above expectations of $81.06. In commercial insurance, net premiums written fell 15%, while the combined ratio increased to 102.7 from 98.3. In consumer insurance, operating revenue declined 2% to $5.98 billion. "While market conditions remain challenging, we are committed to disciplined underwriting and are focused on investing in profitable growth," said Chief Executive Brian Duperreault. AIG's stock has edged up 0.9% year to date through Wednesday's close, while the SPDR Financial Select Sector ETF has gained 8.9% and the S&P 500 has climbed 10.7%.

Information disclosed in 2017 proxies shows a director’s pay package increasingly consists of a retainer and equity grants, and a decline in the use of payments for meeting attendance and participation in a committee.

After Irma, Florida residents are lacking in many necessities. One of the more frustrating is the paucity of insurance adjusters, which threatens to anger policyholders and potentially delay the state’s rebuilding efforts.

As part of a cross-selling push, BlackRock Inc. is pitching its clients the services of its Financial Markets Advisory business, which helped many of Wall Street’s largest banks pass the Federal Reserve’s annual stress tests last year.

Hurricane Harvey could inundate the National Flood Insurance Program with billions in new claims shortly before the plan is scheduled to expire on Sept. 30 with just $5.8 billion left it can borrow from the Treasury to meet obligations.

Ten years ago the first glimpses of the global financial crisis came into view. That day didn’t expose just the disarray of the global financial industry. It also illuminated behavioral patterns that helped accentuate the crisis.

After Irma, Florida residents are lacking in many necessities. One of the more frustrating is the paucity of insurance adjusters, which threatens to anger policyholders and potentially delay the state’s rebuilding efforts.

American International Group Inc.

American International Group, Inc. is an insurance company, which engages in the provision of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services. Its offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. It operates through Commercial Insurance, Consumer Insurance, and Corporate and Other Category. The Commercial Insurance has three operating segments: Property Casualty, Mortgage Guaranty and Institutional Markets. It provides insurance products and services for commercial and institutional customers. The Consumer Insurance also has three operating segments: Retirement, Life and Personal Insurance. It brings a portfolio of retirement, life insurance and personal insurance products offered through distribution networks. The Corporate and Other Category segment includes AIG Parent as well as certain legacy assets and run-off insurance businesses. The company was founded by Cornelius Vander Starr in 1919 and is headquartered in New York, NY.
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